Documents show years of tax troubles for Cannon

CHARLOTTE — The finances of Charlotte's former mayor are being called into question after federal agents charged him with accepting bribes. Channel 9 uncovered documents that show years of tax troubles for Patrick Cannon and his wife, Trenna when the IRS took action against Cannon when he failed to pay tens of thousands of dollars in taxes.

Cannon resigned from the seat of mayor Wednesday evening after the FBI filed a 48-page complaint, claiming he accepted payment from undercover agents for his influence in development projects. He was arrested Wednesday morning.

Cannon first decided to leave office in 2005 when he was an at-large council member and when court records Channel 9 obtained show he owed money to the IRS.
 
The agency then slammed Cannon with three federal tax liens. A tax lien is when the government can take hold of your property if you don't pay what you owe.

One of the liens was for about $129,560.64 for back taxes in 2001, 2002 and 2004. Another one was for a $71,362.76.
 
Then, one was filed against Cannon and his wife for taxes owed in 2006 and 2007 at $26,187.25.
 
The state of North Carolina went calling for Cannon in 2005 for $6,396.20 in delinquent taxes.
 
Tax attorney, Rashad Phillips is not Cannon's accountant, but he said the amounts owed show Cannon had a significant income while having problems paying the government.

"The issue was unpaid and unresolved for quite some time," said Phillips. "It's a serious matter. The next step is the IRS seizing assets."

Cannon resolved his tax issues in 2006 and 2008 and returned to politics in 2009. A year later, the FBI launched an investigation into claims Cannon was accepting bribes.

Between those allegations and these documents, Phillips said it all raises a lot of questions.

"If they are in the public eye, it could cast doubt about their ability to be financially responsible."

Phillips said it takes a while for liens to be filed. So, if Cannon had any tax problems during the time federal agents say he was accepting large amounts of cash, it may not be known for a while.

WSOC